Mitigating effect

Legislative changes mean that more people are going to be affected by inheritance tax, but there are...

Legislative changes mean that more people are going to be affected by inheritance tax, but there are a number of ways in which this can be mitigated. Trust arrangements or gifts treated as exempt transfers are good options. Gifts can be used for a number of situations including weddings, life assurance premiums, and gifts to family. The Inland Revenue is never far behind though - it is seeking to crack down on tax mitigation schemes, for example with its pre-owned assets tax (POAT). But even here there are escape strategies. In some cases it may be possible to unravel the arrangements which...